Why Do Ultra-High-Net-Worth Individuals Still Need a Mortgage to Buy a Home?

Yes, many wealthy individuals who could potentially buy a property outright still choose to use mortgage finance. At this level, a mortgage is not necessarily about affordability. It can form part of a wider approach to managing liquidity, assets and capital.

The audience for high-value property finance is substantial. According to the Knight Frank Wealth Report 2026, the global population of ultra-high-net-worth individuals, defined as those with a net worth of at least US$30 million, reached 713,626. The world's billionaire population also stands at more than 3,000.

For some of these individuals, the decision to borrow rather than pay cash can be driven by the desire to retain liquidity and avoid concentrating a significant proportion of their wealth in one property.

The cash myth

It is a common assumption that wealthy people always buy their homes in cash. In reality, some high-net-worth and ultra-high-net-worth buyers choose to finance part of a property purchase even when they have sufficient assets to fund it outright.

Paying cash can provide the certainty of owning a property without mortgage debt, but it also commits a substantial amount of capital to an illiquid asset. A mortgage can provide an alternative by allowing the buyer to retain some capital outside the property.

Whether this is appropriate depends entirely on the individual's financial circumstances, objectives, liquidity requirements, risk tolerance and the cost and structure of the borrowing.

The real reason: opportunity cost

One reason a wealthy buyer may choose to borrow is opportunity cost.

Using a large amount of cash to purchase a property means that capital is no longer available for other purposes. Depending on the individual's wider financial position, they may prefer to retain capital in investments, businesses, cash reserves or other assets rather than concentrating it entirely in the property.

However, this does not mean that borrowing is automatically financially advantageous. Investment returns are uncertain, assets can fall in value and borrowing has a cost. The decision to finance a property should therefore be considered in the context of the borrower's overall financial position rather than based on an assumption that investments will outperform the cost of the mortgage.

Enness does not provide investment advice, and readers should obtain independent investment advice where appropriate.

Liquidity, tax and inflation

Opportunity cost is one consideration, but liquidity can also be important. Even substantial fortunes can be concentrated in businesses, property, funds and other investments rather than readily accessible cash.

A mortgage may allow an eligible borrower to retain more liquid capital rather than committing the full purchase price to a property. That retained capital may then remain available for other financial requirements, subject to the individual's wider strategy.

Tax can also influence the decision to borrow, although the treatment of mortgage interest, property ownership and investment income varies significantly between jurisdictions and individual circumstances. Independent tax advice should always be obtained before making decisions based on potential tax treatment.

Inflation may also affect the real value of fixed debt over time, but this should not be interpreted as meaning that borrowing will necessarily become cheaper or more advantageous. Interest rates, inflation, property values and investment performance can all change.

So do millionaires ever pay their mortgages off?

Some wealthy borrowers choose to repay their mortgages, while others retain borrowing for longer periods. There is no single approach that is appropriate for every high-net-worth individual.

A borrower may choose to reduce or repay a mortgage because they want to minimise debt, reduce interest costs or change their overall risk exposure. Another borrower may prefer to retain the facility because liquidity is more important to them.

The right decision depends on the individual's assets, income, liabilities, objectives and ability to service the borrowing.

Why a mortgage for the wealthy looks nothing like a normal one

Putting this thinking into practice is where specialist lending can become relevant. A wealthy individual's income may be irregular, internationally sourced or closely connected to business interests, while a significant proportion of their wealth may sit outside conventional savings accounts.

A high-value mortgage can therefore be structured around a broader assessment of the borrower's financial position rather than relying solely on a straightforward salary multiple.

Feature	Standard residential mortgage	UHNW or large mortgage
Basis of lending	Income and affordability	Wider financial position, including assets and investments
Typical structure	Capital repayment	Interest-only or capital repayment, depending on circumstances
Security	Usually the property	The property and, where appropriate, additional eligible assets
Loan size	Varies by lender and borrower	Potentially substantially larger, subject to lender criteria
Where it is arranged	High-street banks and mortgage lenders	Private banks and specialist lenders, often via a broker
Rate	Product-specific	Negotiated according to the borrower, property and lender

In practice, these facilities can include large mortgage loans, million pound mortgages or complex mortgages, depending on the borrower's circumstances.

For some borrowers, interest-only mortgages can help manage monthly commitments and preserve liquidity, although the borrower must have a suitable strategy for repaying the capital at the end of the term.

Internationally mobile buyers may also consider foreign currency mortgages and international mortgages. Where appropriate, securities-backed lending can provide another route to liquidity against eligible investment assets, although this carries its own risks.

What is a UHNW mortgage, and what rates apply?

An ultra-high-net-worth mortgage is a large, bespoke home loan designed around the financial circumstances of a borrower with substantial assets.

There is no single standard rate or structure for this type of lending. Terms are negotiated case by case and can depend on factors including the size and nature of the assets involved, the property, loan-to-value, jurisdiction, currency, liquidity and the lender.

A high-net-worth mortgage may therefore look very different from a conventional residential mortgage.

Getting access to this kind of finance

Private banks and specialist lenders that provide high-value mortgage facilities may apply different criteria from mainstream mortgage lenders. Some facilities are relationship-led and may take into account the borrower's wider assets, investments, business interests and international financial position.

A specialist mortgage broker can help identify potential lenders and structures based on the borrower's circumstances. However, no particular lender, rate, loan size or outcome can be guaranteed.

Enness Global works with private banks and specialist lenders to arrange high-value and complex mortgage finance for eligible clients.

If you are considering how to finance a high-value property purchase, you can explore million pound mortgages or speak to Islay Robinson about your requirements.

FAQs

Do rich people have mortgages?

Some do. Wealthy individuals who could potentially purchase a property with cash may still choose mortgage finance to retain liquidity or manage how their wider assets are allocated. The appropriate approach depends on individual circumstances.

Do rich people buy houses in cash?

Some do, while others finance part or all of the purchase. Paying cash removes mortgage debt but commits a significant amount of capital to the property. Financing can preserve liquidity, although it also introduces borrowing costs and risks.

Why do rich people get mortgages instead of paying cash?

Potential reasons include preserving liquidity, avoiding excessive concentration of capital in one property and maintaining flexibility for other financial requirements. Borrowing is not automatically more advantageous, and the costs and risks need to be considered carefully.

Do millionaires pay off their mortgages?

Some do and some retain mortgage borrowing. The decision can depend on the borrower's objectives, liquidity needs, debt preferences, wider assets and ability to service the borrowing.

What is an ultra-high-net-worth mortgage?

It is a large, bespoke mortgage structured around the financial circumstances of a borrower with substantial wealth. Lending may consider the borrower's wider assets and financial position alongside income, property value and other relevant factors. Terms vary between lenders and transactions.